It's the same issue in France now. Taxes on fuel/petrol brings in close to 30Bn euros per year. The taxes actually make 60% of the price when buying fuel for y

It's the same issue in France now. Taxes on fuel/petrol brings in close to 30Bn euros per year. The taxes actually make 60% of the price when buying fuel for your car. Currently the price of 1L of fuel in France is around 2.1 euros. That is 1.2 euros per liter is going straight to the government's coffers. As always, I am expecting the French government to wake up sometime around 2030 and realize that the taxes are starting to bring in less and less money each year because more and more people are switching to EV. Then there will be a big show from the politicians that the situation is dire and we need to make up the fall in revenue by reducing the social safety net once again for the lower wage earners. As always the people with the lowest wages will be the one paying most taxes in the end. The reason for that being that if they can't afford to switch to an EV due to the prohibitive prices, then they will be the last ones on the line having to pay heavy taxes on petrol while the middle class who can afford it would have already switched a while ago. Ergo we are creating a regressive tax on poor people. As to where to find the revenue to make up the shortfall, that is going to be incredibly tough. For starters France has been running a deficit forever and the debt as ballooned during COVID. Could it continue to do so? That seems unlikely because France has pledge to reduce its deficit to fall in line with EU regulations so France needs to tighten its belt somehow. At the same time, it needs to increase the EV uptake to meet the climate action pledge so it can't start raising taxes on EV. Some subsidies may disappear but that is not going to be enough to plug the hole left by the fuel taxes. It also can't raise the VAT which is currently at 20% and is a very unpopular measure who will surely lead to an election loss for the minority party in power currently. It can't raise more taxes on the middle class as it's being squeezed like a lemon currently and would also lead to mass protests(see Yellow Vest protests of 2019 to get an idea of what could happen). Some seem to think that an increase in Ev uptake will lead to savings elsewhere, in the healthcare costs for example. But Those savings will not materialize until at least a few years after the transition to full EV has happened. Yes the air may be less polluted as the transition happens, but the damage is already done and those who suffered or are suffering due to air pollution currently will require indefinite ongoing care in the future which will be expensive.